Facing up to realities of urban development

Shenzhen has long been regarded as a pioneer of China's urbanization. In 1979 it had roughly 30,000 people when the late leader Deng Xiaoping made it a Special Economic Zone. Today it is a thriving metropolis of more than 12 million whose population has risen by 56 percent in the last decade.

The population density in Shenzhen has risen to 17,150 people per square kilometer, making it fifth in the list of global megacities ahead of even Shanghai and Beijing. From a small fishing village, Shenzhen has become a city with 22 urban areas. A further seven are likely to be added before 2015, says information provided by WorldUnion, a Shenzhen-based real estate consultant.

Among the city's eight districts, Futian, the hub of living in Shenzhen, and Nanshan, which encompasses the southwest area of Shenzhen, are the two development hot spots with mushrooming urban complexes where office buildings, shopping malls, residences and related public facilities are coming up.

"In Futian district, more than 70 buildings are generating more than 1 billion yuan in tax revenue every year. Most of them are multi-functional buildings where high-rise floors are used for offices and apartments, while lower-level areas are for commercial purposes," says Xie Huihui, director of Futian District Urban Redevelopment Authority.

That in itself is a major transformation from the old village economic model of landlords, mostly local people, charging rent. Without unified planning, most of the earlier buildings were built according to the whims and fancies of the landlords. In many cases they gave an impression of being dirty and unsafe.

"Some of these buildings are in the core of Shenzhen, and look extremely old and shabby. Because of economic development, more space is in need of industrial upgrades. Therefore, we have no choice but to create more space through modification and reconstruction," Xie says.

According to Xie, policymakers in Shenzhen have decided to develop eight areas in Futian district, each one with a featured industry. "Municipal supporting systems such as transportation, medical facilities, education and community services, are also being planned in the new city complexes," he says.

Gemdale Dabaihui Corp, a Chinese real estate development company, is currently undertaking the process of demolition and reconstruction of East Gangxia village.

"We signed the contract with the local government in 2006. However, it took us seven years to resettle 100,000 people from the village, which occupies 220,000 square meters of flat area," says Hu Weiming, general manager of Gemdale Dabaihui Corp (Shenzhen).

From Hu's office, a high-rise building near the village, can be seen the yellow earth and the demolition work that has already been done.

"On the land, we will build two office buildings, six high-end apartments, an art center, one exhibition hall, and a business area of more than 300,000 square meters," Hu says.

The project, which is estimated to be finished in 2017 with an investment of 16 billion yuan, will be the final piece of the Shenzhen central business district.

"Prior to the renovation, land banks in the city were often scattered. But with the new urban complexes, there is a rational, ordered and optimal use of the land," Hu says.

The original village will continue to be an integral part of the new city, he says. "What we are trying to do is to ensure that the villagers earn more money through the newly developed properties.

"We compensate villagers in the proportion of one-to-one in accordance with the size. With a more than 600,000 square meter area earmarked for residents, we are confident that nearly two-thirds will be returned to villagers," Hu says.

Meanwhile the floating population that used to live in the village has moved on to other nearby village-in-cities. Once the complex is finished, some of them will come back.